MANILA, (PNA) –- Philippine share prices closed slightly higher for a fourth day on Friday as the country’s new credit rating upgrade continued to boost investors’ sentiment.
The benchmark Philippine stock exchange index (PSEi) ended 2.83 points higher to 6,390.48 from previous day’s 6,387.65 finish.
Brokerage firm 2tradeasia.com attributed the market’s rise to positive follow-through response from investment grade rating gained by the Philippines from debt-watcher Moody’s Investors Service on Thursday.
This is the third credit rating upgrade the country received after Fitch Ratings, Inc. and Standard & Poor’s (S&P) raised their respective grades for Philippine debt papers earlier in the year.
The Philippines achieved this recognition even amid the pork barrel fund controversy and while the United States government began its partial shutdown earlier this week as Congress failed to agree a new budget.
The Manila-based Asian Development Bank also raised its 2013 growth forecast for the Philippines to seven percent from earlier forecast of six percent.
”Our ship, the Philippines, is undoubtedly in good shape –ADB, S&P and the ratings agencies say so. The seas are rough as headwinds from the US fiscal crisis cloud over the routes. These storms are expected to persist in the next two week –unless a pleasant surprise agreement comes up over the weekend,” said Accord Capital Equities Corp.
Accord Capital advised investors to seize buying opportunities offered by price drops especially as the country heads into the second quarter earnings cycle.
Almost all counters rose moderately.
The sub-indices of industrial and services were in the negative territory.
Volume of transactions reached 1.88 billion shares valued at P8.34 billion.
Advancers dominated decliners, 75 to 59, while 53 issues were unchanged.